Sensex, Nifty end marginally lower as geopolitical tensions, Fed decision weigh on sentiment

Mumbai, June 19 The Indian stock market closed lower on Thursday as investors remained cautious due to rising tensions between Iran and Israel, unstable crude oil prices, and concerns around US President Donald Trump's looming reciprocal tariffs.

The Sensex declined by 82.79 points, or 0.10 per cent, to close at 81,361.87. During the day, it moved between an intra-day high of 81,583.94 and a low of 81,191.04. Similarly, the Nifty also ended lower by 18.80 points, or 0.08 per cent, to settle at 24,793.25.

The uncertainty was heightened after the US Federal Reserve decided to keep interest rates unchanged at 4.25 to 4.5 per cent.

"The Indian equity index experienced rangebound movement with a negative bias as cautious sentiment spread across the globe, driven by concerns over potential US involvement in the Middle-East conflict," said Vinod Nair of Geojit Investments Limited.

Investor mood was further affected by the Fed's decision to keep interest rates unchanged while signalling persistent inflation and slower economic growth, which weighed on software export stocks, Nair added.

In Sensex, the biggest drags on the index were Bajaj Finance, Tech Mahindra, IndusInd Bank, and Nestle India, which fell between 2.50 per cent and 1.28 per cent.

On the other hand, Mahindra & Mahindra, Titan Company, Maruti Suzuki India, Bharti Airtel, and Larsen & Toubro managed to close in the green, with gains ranging from 1.57 per cent to 0.32 per cent.

The broader market also witnessed selling pressure. The Nifty Midcap100 index fell by 1.63 per cent, while the Nifty Smallcap100 dropped by 1.99 per cent -- indicating weakness in mid and small-cap stocks.

The Nifty Auto index stood out by closing in the green, even as the broader market remained under pressure. It was the only sectoral index to end in positive territory, rising by 0.52 per cent.

In contrast, the Nifty PSU Bank index was the worst performer among sectoral indices, ending the day with a sharp decline of 2.04 per cent. Other sectors also faced heavy selling. The Nifty Metal, Media, and Realty indices each slipped more than 1 per cent.

The Indian rupee extended its decline for the third consecutive day, driven by persistent geopolitical uncertainty and a hawkish stance from the US Federal Reserve.

“The rupee's depreciation may continue in the near term, with the USD/INR pair potentially heading towards the 87 to 87.50 range,” said Dilip Parmar from HDFC Securities.

Meanwhile, Gold traded in a volatile range. Comex gold moved between $3,347 and $3,375, while MCX gold traded between Rs 98,650 and Rs 99,450.

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